LAKE SUCCESS, N.Y.,
Aug. 29, 2019 /PRNewswire/
-- The Hain Celestial Group, Inc. (Nasdaq: HAIN) ("Hain
Celestial" or the "Company"), a leading organic and natural
products company with operations in North
America, Europe,
Asia and the Middle East providing consumers with A
Healthier Way of Life™, today reported financial results for the
fourth quarter and fiscal year ended June
30, 2019. The results contained herein are presented with
the Hain Pure Protein operating segment being treated as a
discontinued operation.
"We are pleased with our team's solid execution on our
transformational strategic plan during the fourth quarter. Our
financial results demonstrate the third consecutive quarter of
sequential adjusted margin improvement along with key operational
improvements in the United States
and internationally," commented Mark L.
Schiller, Hain Celestial's President and Chief Executive
Officer. "In a very short period of time, we have started to make
significant progress on our key strategies in the United States including simplifying the
portfolio, strengthening our core capabilities and expanding
margins and cash flow. The team is delivering on the plan we
outlined at our Investor Day in February which was to first get
smaller and more profitable so that we could then focus our
resources on reinvigorating profitable topline growth in a core set
of brands by optimizing in-store assortment, building innovation
and enhancing marketing. For fiscal 2020, we remain confident in
our ability to generate significant further improvements in overall
profit across our business and in building the foundation for
future accelerated growth."
FINANCIAL HIGHLIGHTS1
Summary of Fourth Quarter Results from Continuing
Operations2
- Net sales decreased 10% to $557.7
million compared to the prior year period.
- Net sales decreased 7% on a constant currency basis compared to
the prior year period.
- When adjusted for Foreign Exchange and Acquisitions,
Divestitures and certain other items, including the Project Terra
Stock Keeping Unit ("SKU") rationalization3, net sales
decreased 6% compared to the prior year period.
- Gross margin of 19.0%, a 120 basis point decrease over the
prior year period and a 190 basis point decrease from the third
quarter of fiscal 2019.
- Adjusted gross margin of 23.0%, a 190 basis point increase over
the prior year period and a 140 basis point increase from the third
quarter of fiscal 2019.
- Operating income of $0.7 million
compared to $16.6 million in the
prior year period and $23.9 million
in the third quarter of fiscal 2019.
- Adjusted operating income of $40.5
million compared to $44.5
million in the prior year period and $38.9 million in the third quarter of fiscal
2019.
- Net loss of $7.7 million compared
to $4.6 million in the prior year
period and net income of $10.1
million in the third quarter of fiscal 2019.
- Adjusted net income of $22.4
million compared to $27.7
million in prior year period and $21.7 million in the third quarter of fiscal
2019.
- EBITDA of $25.9 million compared
to $45.8 million in the prior year
period and $41.5 million in the third
quarter of fiscal 2019.
- EBITDA margin of 4.6%, a 280 basis point decrease compared to
the prior year period and 230 basis point decrease from the third
quarter of fiscal 2019.
- Adjusted EBITDA of $57.0 million
compared to $61.4 million in the
prior year period and $55.5 million
in the third quarter of fiscal 2019.
- Adjusted EBITDA margin of 10.2%, a 30 basis point increase
compared to the prior year period and a 90 basis point increase
from the third quarter of fiscal 2019.
- Loss per diluted share of $0.07
compared to $0.04 in the prior year
period and earnings per diluted share ("EPS") of $0.10 in the third quarter of fiscal 2019.
- Adjusted EPS of $0.21 compared to
$0.27 in the prior year period and
$0.21 in the third quarter of fiscal
2019.
Summary of Fiscal Year 2019 Results from Continuing
Operations2
- Net sales decreased 6% to $2,302.5
million compared to the prior year.
- Net sales decreased 4% on a constant currency basis compared to
the prior year.
- When adjusted for Foreign Exchange and Acquisitions,
Divestitures and certain other items, including the Project Terra
SKU rationalization3, net sales decreased 2% compared to
the prior year.
- Gross margin of 19.3%, a 170 basis point decrease over the
prior year.
- Adjusted gross margin of 21.0%, a 110 basis point decrease over
the prior year.
- Operating loss of $14.9 million
compared to operating income of $106.0
million in the prior year.
- Adjusted operating income of $130.2
million compared to $186.1
million in the prior year.
- Net loss of $49.9 million
compared to net income of $82.4
million in the prior year.
- Adjusted net income of $68.7
million compared to $121.3
million in prior year.
- EBITDA of $80.7 million compared
to $197.2 million in the prior
year.
- EBITDA margin of 3.5%, a 450 basis point decrease compared to
the prior year.
- Adjusted EBITDA of $191.4 million
compared to $255.9 million in the
prior year.
- Adjusted EBITDA margin of 8.3%, a 210 basis point decrease
compared to the prior year.
- Loss per diluted share of $0.48
compared to EPS of $0.79 in the prior
year.
- Adjusted EPS of $0.66 compared to
$1.16 in the prior year.
SEGMENT HIGHLIGHTS FROM CONTINUING OPERATIONS
Hain Celestial United States
Hain Celestial United
States net sales in the fourth quarter were $239.8 million, a decrease of 11% over the prior
year period. When adjusted for Acquisitions, Divestitures and
certain other items including the Project Terra SKU
rationalization3, net sales decreased 8% over the prior
year period. Segment operating loss in the fourth quarter was
$2.6 million, a 114% decrease from
the prior year period and a 115% decrease from the third quarter of
fiscal 2019. Adjusted operating income was $20.3 million, a 12% decrease over the prior year
period and a 7% decrease from the third quarter of fiscal 2019.
Segment EBITDA in the fourth quarter was $6.0 million, a 73% decrease from the prior year
period and a 71% decrease from the third quarter of fiscal 2019.
Adjusted EBITDA was $24.2 million, a
10% decrease over the prior year period and a 5% decrease from the
third quarter of 2019.
Hain Celestial United States net sales in fiscal year 2019 were
$1,009.4 million, a decrease of 7%
over the prior year. When adjusted for Acquisitions, Divestitures
and certain other items including the Project Terra SKU
rationalization3, net sales decreased 4% over the prior
year. Segment operating income in fiscal year 2019 was $23.9 million, a 72% decrease from the prior
year. Adjusted operating income was $63.2
million, a 44% decrease over the prior year. Segment EBITDA
in fiscal year 2019 was $44.6
million, a 59% decrease from the prior year. Adjusted EBITDA
was $77.9 million, a 40% decrease
over the prior year.
Hain Celestial United Kingdom
Hain Celestial United
Kingdom net sales in the fourth quarter were $214.4 million, a decrease of 10% over the prior
year period. When adjusted for Foreign Exchange, Acquisitions and
Divestitures and certain other items3 net sales
decreased 5% over the prior year period. The net sales decrease
compared to the prior year period was driven by 14% and 7% declines
from Hain Daniels and Ella's
Kitchen®, respectively, partially offset by 3% growth from Tilda®,
or 9% and 2% declines from Hain
Daniels and Ella's Kitchen®, respectively, and 8% growth
from Tilda®, after adjusting for Foreign Exchange, Acquisitions and
Divestitures and certain other items3. The results for
the United Kingdom segment
compared to the prior year period were primarily driven by
declines from the New Covent Garden Soup Co.®, Yorkshire
Provender® and Johnson's Juice Co.™ brands and private
label sales, offset in part by growth in the Linda McCartney®,
Hartley's® and Cully & Sully® brands. Segment operating income
was $15.6 million, an 18%
decrease over the prior year period and a 14% decrease from the
third quarter of fiscal 2019. Adjusted operating income was
$22.3 million, an increase of 10%
over the prior year period and a 17% increase from the third
quarter of fiscal 2019. Segment EBITDA in the fourth quarter
was $27.1 million, a 1% increase from
the prior year period and a 5% increase from the third quarter of
fiscal 2019. Adjusted EBITDA was $29.4
million, a 7% increase over the prior year period and 10%
increase from the third quarter of 2019.
Hain Celestial United Kingdom net sales in fiscal year 2019 were
$885.5 million, a decrease of 6% over
the prior year. When adjusted for Foreign Exchange, Acquisitions
and Divestitures and certain other items3 net sales
decreased 1% over the prior year. The results for the United Kingdom segment compared to the prior
year reflected a 9% decline in Hain
Daniels, or 4% after adjusting for Foreign Exchange,
Acquisitions and Divestitures and certain other items3,
primarily driven by declines from the New Covent Garden Soup
Co.® and Johnson's Juice Co.™ brands and private label
sales, offset in part by growth in the Linda McCartney® and
Hartley's® brands. This was partially offset by 3% growth from
Tilda® and 1% growth from Ella's Kitchen®, or 8% and 5%
growth, respectively, after adjusting for Foreign Exchange,
Acquisitions and Divestitures and certain other items3.
Segment operating income was $52.4
million, a 7% decrease over the prior year. Adjusted
operating income was $70.2 million,
flat compared to the prior year. Segment EBITDA in fiscal year 2019
was $90.9 million, a 2% increase from
the prior year. Adjusted EBITDA was $99.5
million, a 1% decrease over the prior year.
Rest of World
Rest of World net sales in the fourth
quarter were $103.5 million, a
decrease of 7% over the prior year period. When adjusted for
Foreign Exchange, Acquisitions and Divestitures and certain other
items3 net sales decreased 1% over the prior year
period. Net sales for Hain Celestial Canada decreased 8% compared
to the prior year period, or 2% after adjusting for Foreign
Exchange, Acquisitions and Divestitures and certain other
items3, primarily driven by declines from the Sensible
Portions®, Europe's Best® and
Spectrum® Organics brands, offset in part by growth from the
Live Clean® and Yves Veggie Cuisine® brands. Net
sales for Hain Celestial Europe increased 1%, or 7% on a constant
currency basis, primarily driven by growth from the Natumi® brand
and private label sales, offset in part by declines from the
Dream® and Joya® brands. Net sales for Hain Ventures,
formerly known as Cultivate Ventures, decreased 29%, or 29% after
adjusting for Acquisitions and Divestitures and certain other
items3, primarily driven by declines from the
BluePrint®, DeBoles® and SunSpire® brands, offset in part by
growth from private label sales. Segment operating income in
the fourth quarter was $5.7 million,
a 29% decrease over the prior year period and a 47%
decrease from the third quarter of fiscal 2019. Adjusted
operating income was $11.2 million, a
13% increase over the prior year period and a 1%
decrease from the third quarter of fiscal 2019. Segment EBITDA
in the fourth quarter was $8.0
million, a 33% decrease from the prior year period and a 43%
decrease from the third quarter of fiscal 2019. Adjusted EBITDA was
$14.6 million, a 13% increase over
the prior year period and a 1% increase from the third quarter of
2019.
Rest of World net sales in fiscal year 2019 were $407.6 million, a decrease of 6% over the prior
year. When adjusted for Foreign Exchange, Acquisitions and
Divestitures and certain other items3 net sales
decreased 1% over the prior year. Net sales for Hain Celestial
Canada decreased 8% compared to the prior year, or 2% after
adjusting for Foreign Exchange, Acquisitions and Divestitures and
certain other items3, primarily driven by declines from
the Europe's Best®, Dream® and
Spectrum® Organics brands and private label sales, offset in
part by growth from the Live Clean®, Sensible Portions® and
Yves Veggie Cuisine® brands. Net sales for Hain Celestial
Europe decreased 1%, or increased 4% on a constant currency basis,
primarily driven by strong performance from the Joya® and
Natumi® brands and private label sales, offset in part by declines
from the Lima®, Danival® and Dream® brands. Net sales for
Hain Ventures, formerly known as Cultivate Ventures, decreased 20%,
or 18% after adjusting for Acquisitions and Divestitures and
certain other items3, primarily driven by declines from
the BluePrint®, DeBoles® and SunSpire® brands, offset in
part by growth from the GG UniqueFiber™ brand and private
label sales. Segment operating income in fiscal year 2019 was
$32.8 million, a 15%
decrease over the prior year. Adjusted operating income
was $41.0 million, a 4%
decrease over the prior year. Segment EBITDA in fiscal year
2019 was $44.0 million, a 13%
decrease from the prior year. Adjusted EBITDA was $53.3 million, flat compared to the prior
year.
Hain Pure Protein Discontinued Operations
As
previously disclosed on May 5, 2018,
the results of operations, financial position and cash flows
related to the operations of the Hain Pure Protein business segment
have been moved to discontinued operations in the current and prior
periods. On February 15, 2019, the
Company completed the sale of substantially all of the assets used
primarily for the Plainville Farms business and on June 28, 2019 the Company completed the sale of
its equity interest in Hain Pure Protein Corporation, which
included the FreeBird® and Empire Kosher® businesses. Net sales for
Hain Pure Protein in the fourth quarter were $58.7 million, a decrease of 48% compared to the
prior year period. Net loss from discontinued operations, net of
tax in the fourth quarter was $5.9
million and included loss on sale of $0.6 million.
For fiscal year 2019, net sales for Hain Pure Protein were
$408.1 million, a decrease of 20%
compared to the prior year. Net loss from discontinued operations,
net of tax for fiscal year 2019 was $133.4
million and included a $80.0
million non-cash impairment charge and a loss on sale of
$30.0 million.
Fiscal Year 2020 Guidance
The Company expects the
following for fiscal year 2020 pro forma results excluding the
contribution from its recently announced completed sale of
Tilda®:
|
Fiscal Year
2020
|
|
Reported
|
Constant
Currency
|
Adjusted
EBITDA
|
$168 Million to $192
Million
|
$173 Million to $198
Million
|
% Growth
|
+2% to
+16%
|
+5% to
+20%
|
Adjusted
EPS
|
$0.59 to
$0.72
|
$0.62 to
$0.75
|
% Growth
|
-2% to
+20%
|
+3% to
+25%
|
Guidance, where adjusted, is provided on a non-GAAP basis and
excludes acquisition-related expenses; integration charges;
restructuring charges, start-up costs, consulting fees and other
costs associated with Project Terra; unrealized net foreign
currency gains or losses, and other non-recurring items that may be
incurred during the Company's fiscal year 2020, which the Company
will continue to identify as it reports its future financial
results. Guidance also excludes the impact of any future
acquisitions and divestitures.
The Company cannot reconcile its expected Adjusted EBITDA to net
income or adjusted earnings per diluted share to earnings per
diluted share under "Fiscal Year 2020 Guidance" without
unreasonable effort because certain items that impact net income
and other reconciling metrics are out of the Company's control
and/or cannot be reasonably predicted at this time.
1 This press release includes certain non-GAAP
financial measures, which are intended to supplement, not
substitute for, comparable GAAP financial measures. Reconciliations
of non-GAAP financial measures to GAAP financial measures are
provided herein in the tables "Reconciliation of GAAP Results to
Non-GAAP Measures."
2 Unless otherwise noted all results included in
this press release are from continuing operations.
3 Refer to "Net Sales Growth at Constant Currency and
Adjusted for Acquisitions, Divestitures and Other" provided
herein.
(unaudited and
dollars in thousands)
|
United
States
|
United
Kingdom
|
Rest of
World
|
Corporate/
Other
|
Total
|
Net
Sales
|
|
|
|
|
|
Net sales - Three
months ended 6/30/19
|
$
239,821
|
$
214,367
|
$
103,494
|
$
-
|
$
557,682
|
Net sales - Three
months ended 6/30/18
|
$
269,857
|
$
239,061
|
$
110,680
|
$
-
|
$
619,598
|
% change - FY'19 net
sales vs. FY'18 net sales
|
(11.1)%
|
(10.3)%
|
(6.5)%
|
|
(10.0)%
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
Three months ended
6/30/19
|
|
|
|
|
|
Operating (loss)
income
|
$
(2,585)
|
$
15,591
|
$
5,742
|
$
(18,008)
|
$
740
|
Non-GAAP adjustments
(1)
|
22,934
|
6,719
|
5,447
|
4,706
|
39,806
|
Adjusted operating
income (loss)
|
$
20,349
|
$
22,310
|
$
11,189
|
$
(13,302)
|
$
40,546
|
Operating (loss)
income margin
|
(1.1)%
|
7.3%
|
5.5%
|
|
0.1%
|
Adjusted operating
income margin
|
8.5%
|
10.4%
|
10.8%
|
|
7.3%
|
|
|
|
|
|
|
Three months ended
6/30/18
|
|
|
|
|
|
Operating income
(loss)
|
$
18,623
|
$
18,984
|
$
8,069
|
$
(29,096)
|
$
16,580
|
Non-GAAP adjustments
(1)
|
4,571
|
1,257
|
1,862
|
20,211
|
27,901
|
Adjusted operating
income (loss)
|
$
23,194
|
$
20,241
|
$
9,931
|
$
(8,885)
|
$
44,481
|
Operating income
margin
|
6.9%
|
7.9%
|
7.3%
|
|
2.7%
|
Adjusted operating
income margin
|
8.6%
|
8.5%
|
9.0%
|
|
7.2%
|
|
|
|
|
|
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
|
|
|
|
|
|
|
|
(unaudited and
dollars in thousands)
|
United
States
|
United
Kingdom
|
Rest of
World
|
Corporate/
Other
|
Total
|
Net
Sales
|
|
|
|
|
|
Net sales - Twelve
months ended 6/30/19
|
$
1,009,406
|
$
885,488
|
$
407,574
|
$
-
|
$
2,302,468
|
Net sales - Twelve
months ended 6/30/18
|
$
1,084,871
|
$
938,029
|
$
434,869
|
$
-
|
$
2,457,769
|
% change - FY'19 net
sales vs. FY'18 net sales
|
(7.0)%
|
(5.6)%
|
(6.3)%
|
|
(6.3)%
|
|
|
|
|
|
|
Operating (loss)
income
|
|
|
|
|
|
Twelve months ended
6/30/19
|
|
|
|
|
|
Operating income
(loss)
|
$
23,864
|
$
52,413
|
$
32,820
|
$
(123,983)
|
$
(14,886)
|
Non-GAAP adjustments
(1)
|
39,347
|
17,769
|
8,179
|
79,781
|
145,076
|
Adjusted operating
income (loss)
|
$
63,211
|
$
70,182
|
$
40,999
|
$
(44,202)
|
$
130,190
|
Operating income
(loss) margin
|
2.4%
|
5.9%
|
8.1%
|
|
(0.6)%
|
Adjusted operating
income margin
|
6.3%
|
7.9%
|
10.1%
|
|
5.7%
|
|
|
|
|
|
|
Twelve months ended
6/30/18
|
|
|
|
|
|
Operating income
(loss)
|
$
86,319
|
$
56,046
|
$
38,660
|
$
(74,985)
|
$
106,040
|
Non-GAAP adjustments
(1)
|
26,841
|
14,227
|
3,985
|
34,980
|
80,033
|
Adjusted operating
income (loss)
|
$
113,160
|
$
70,273
|
$
42,645
|
$
(40,005)
|
$
186,073
|
Operating income
margin
|
8.0%
|
6.0%
|
8.9%
|
|
4.3%
|
Adjusted operating
income margin
|
10.4%
|
7.5%
|
9.8%
|
|
7.6%
|
|
|
|
|
|
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
|
|
Webcast Presentation
Hain Celestial will host a
conference call and webcast today at 8:30 AM
Eastern Time to discuss its results and business outlook.
The call will be webcast and the accompanying presentation will be
available under the Investor Relations section of the Company's
website at www.hain.com.
About The Hain Celestial Group, Inc.
The Hain
Celestial Group (Nasdaq: HAIN), headquartered in Lake Success, NY, is a leading organic and
natural products company with operations in North America, Europe, Asia
and the Middle East. Hain
Celestial participates in many natural categories with well-known
brands that include Almond Dream®, Arrowhead Mills®, Bearitos®,
Better Bean®, BluePrint®, Casbah®, Celestial Seasonings®, Clarks™,
Coconut Dream®, Cully & Sully®, Danival®, DeBoles®, Earth's
Best®, Ella's Kitchen®, Europe's
Best®, Farmhouse Fare™, Frank
Cooper's®, Gale's®, Garden of Eatin'®, GG UniqueFiber™, Hain
Pure Foods®, Hartley's®, Health Valley®, Imagine™, Johnson's Juice
Co.™, Joya®, Lima®, Linda McCartney® (under license), MaraNatha®,
Mary Berry (under license), Natumi®,
New Covent Garden Soup Co.®, Orchard House®, Rice Dream®,
Robertson's®, Rudi's Gluten-Free Bakery™, Rudi's Organic Bakery®,
Sensible Portions®, Spectrum® Organics, Soy Dream®, Sun-Pat®,
Sunripe®, SunSpire®, Terra®, The Greek Gods®, Walnut Acres®,
WestSoy®, Yorkshire Provender®, Yves Veggie Cuisine® and
William's™. The Company's personal care products are marketed under
the Alba Botanica®, Avalon Organics®, Earth's Best®, JASON®, Live
Clean® and Queen Helene® brands.
Safe Harbor Statement
Certain statements contained in
this press release constitute "forward-looking statements" within
the meaning of federal securities laws, including the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are predictions based on expectations and projections
about future events and are not statements of historical fact. You
can identify forward-looking statements by the use of
forward-looking terminology such as "plan", "continue", "expect",
"anticipate", "intend", "predict", "project", "estimate", "likely",
"believe", "might", "seek", "may", "will", "remain", "potential",
"can", "should", "could", "future" and similar expressions, or the
negative of those expressions, or similar words or phrases that are
predictions of or indicate future events or trends and that do not
relate solely to historical matters. You can also identify
forward-looking statements by discussions of the Company's
strategic initiatives, including Project Terra, the Company's
Guidance for Fiscal Year 2020 and our future performance and
results of operations.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
levels of activity, performance or achievements of the Company, or
industry results, to be materially different from any future
results, levels of activity, performance or achievements expressed
or implied by such forward-looking statements, and you should not
rely on them as predictions of future events. Forward-looking
statements depend on assumptions, data or methods that may be
incorrect or imprecise and may not be able to be realized. We do
not guarantee that the transactions and events described will
happen as described (or that they will happen at all). Such factors
include, among others, the impact of competitive products and
changes to the competitive environment, changes to consumer
preferences, political uncertainty in the United Kingdom and the negotiation of its exit
from the European Union, consolidation of customers or the loss of
a significant customer, reliance on independent distributors,
general economic and financial market conditions, risks associated
with our international sales and operations, our ability to manage
our supply chain effectively, volatility in the cost of
commodities, ingredients, freight and fuel, our ability to execute
and realize cost savings initiatives, including SKU rationalization
plans, the impact of our debt and our credit agreements on our
financial condition and our business, our ability to manage our
financial reporting and internal control system processes,
potential liabilities due to legal claims, government
investigations and other regulatory enforcement actions, costs
incurred due to pending and future litigation, potential liability,
including in connection with indemnification obligations to our
current and former officers and members of our Board of Directors
that may not be covered by insurance, potential liability if our
products cause illness or physical harm, impairments in the
carrying value of goodwill or other intangible assets, our ability
to consummate divestitures, our ability to integrate past
acquisitions, the availability of organic ingredients, disruption
of operations at our manufacturing facilities, loss of one or more
independent co-packers, disruption of our transportation systems,
risks relating to the protection of intellectual property, the risk
of liabilities and claims with respect to environmental matters,
the reputation of our brands, our reliance on independent
certification for a number of our products, and other risks
detailed from time-to-time in the Company's reports filed with the
United States Securities and Exchange Commission, including our
most recent Annual Report on Form 10-K and our subsequent reports
on Forms 10-Q and 8-K. As a result of the foregoing and other
factors, the Company cannot provide any assurance regarding future
results, levels of activity and achievements of the Company, and
neither the Company nor any person assumes responsibility for the
accuracy and completeness of these statements. All forward-looking
statements contained herein apply as of the date hereof or as of
the date they were made and, except as required by applicable law,
the Company disclaims any obligation to publicly update or revise
any forward-looking statement to reflects changes in underlying
assumptions or factors of new methods, future events or other
changes.
Non-GAAP Financial Measures
This press release and the
accompanying tables include non-GAAP financial measures, including
net sales adjusted for the impact of Foreign Exchange, Acquisitions
and Divestitures and certain other items, including SKU
rationalization, as applicable in each case, adjusted operating
income, adjusted gross margin, adjusted net income, adjusted
earnings per diluted share, EBITDA, Adjusted EBITDA and operating
free cash flow. The reconciliations of these non-GAAP financial
measures to the comparable GAAP financial measures are presented in
the tables "Reconciliation of GAAP Results to Non-GAAP Measures"
for the three and twelve months ended June
30, 2019 and 2018 and the three months ended March 31, 2019 and in the paragraphs below.
Management believes that the non-GAAP financial measures presented
provide useful additional information to investors about current
trends in the Company's operations and are useful for
period-over-period comparisons of operations. These non-GAAP
financial measures should not be considered in isolation or as a
substitute for the comparable GAAP measures. In addition, these
non-GAAP measures may not be the same as similar measures provided
by other companies due to potential differences in methods of
calculation and items being excluded. They should be read only in
connection with the Company's Consolidated Statements of Operations
presented in accordance with GAAP.
The Company defines Operating Free Cash Flow as cash provided by
or used in operating activities from continuing operations (a GAAP
measure) less capital expenditures. The Company views Operating
Free Cash Flow as an important measure because it is one factor in
evaluating the amount of cash available for discretionary
investments.
For the three and twelve months ended June 30, 2019 and 2018, Operating Free Cash Flow
from continuing operations was calculated as follows:
|
Three Months Ended
June 30,
|
|
Twelve Months
Ended June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
Cash flow provided by
operating activities - continuing operations
|
$
37,476
|
|
$
53,938
|
|
$
49,519
|
|
$
121,308
|
Purchases of
property, plant and equipment
|
(21,236)
|
|
(22,523)
|
|
(77,128)
|
|
(70,891)
|
Operating Free Cash
Flow - continuing operations
|
$
16,240
|
|
$
31,415
|
|
$
(27,609)
|
|
$
50,417
|
The Company's Operating Free Cash Flow from continuing
operations was $16.2 million for the
three months ended June 30, 2019, a
decrease of $15.2 million from the
three months ended June 30, 2018.
This decrease resulted primarily from a decrease in net (loss)
income adjusted for non-cash charges. The Company's Operating Free
Cash Flow from continuing operations was negative $27.6 million for the twelve months ended
June 30, 2019, a decrease of
$78.0 million from the twelve months
ended June 30, 2018. This decrease
resulted primarily from a decrease in net income adjusted for
non-cash charges and increased capital expenditures in the current
year, offset in part by cash provided by working capital
accounts.
The Company believes presenting net sales at constant currency
provides useful information to investors because it provides
transparency to underlying performance in the Company's
consolidated net sales by excluding the effect that foreign
currency exchange rate fluctuations have on period-to-period
comparability given the volatility in foreign currency exchange
markets. To present this information for historical periods,
current period net sales for entities reporting in currencies other
than the U.S. dollar are translated into U.S. dollars at the
average monthly exchange rates in effect during the corresponding
period of the prior fiscal year, rather than at the actual average
monthly exchange rate in effect during the current period of the
current fiscal year. As a result, the foreign currency impact is
equal to the current year results in local currencies multiplied by
the change in average foreign currency exchange rate between the
current fiscal period and the corresponding period of the prior
fiscal year.
The Company provides net sales adjusted for constant currency,
acquisitions and divestitures, and certain other items including
SKU rationalization, as applicable in each case, to understand the
growth rate of net sales excluding the impact of such items. The
Company's management believes net sales adjusted for such items is
useful to investors because it enables them to better understand
the growth of our business from period-to-period.
The Company defines EBITDA as net (loss) income from continuing
operations (a GAAP measure) before income taxes, net interest
expense, depreciation and amortization, equity in net loss (income)
of equity-method investees, stock-based compensation, net,
stock-based compensation expense in connection with the Succession
Plan, long-lived asset and intangible impairments and unrealized
currency gains and losses. The Company defines segment EBITDA as
operating income (a GAAP measure) before depreciation and
amortization, stock-based compensation, net and long-lived asset
impairments. Adjusted EBITDA is defined as EBITDA before
acquisition-related expenses, including integration and
restructuring charges, and other non-recurring items. The Company's
management believes that these presentations provide useful
information to management, analysts and investors regarding certain
additional financial and business trends relating to its results of
operations and financial condition. In addition, management uses
these measures for reviewing the financial results of the Company
as well as a component of performance-based executive
compensation.
For the three and twelve months ended June 30, 2019 and 2018, EBITDA and Adjusted
EBITDA from continuing operations was calculated as follows:
|
Three Months Ended
June 30,
|
|
Twelve Months
Ended June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(13,551)
|
|
$
(69,941)
|
|
$
(183,314)
|
|
$
9,694
|
Net loss from
discontinued operations
|
(5,897)
|
|
(65,385)
|
|
(133,369)
|
|
(72,734)
|
Net (loss) income
from continuing operations
|
$
(7,654)
|
|
$
(4,556)
|
|
$
(49,945)
|
|
$
82,428
|
|
|
|
|
|
|
|
|
(Benefit) provision
for income taxes
|
(1,018)
|
|
10,629
|
|
(2,697)
|
|
(887)
|
Interest expense,
net
|
8,877
|
|
6,804
|
|
32,970
|
|
24,339
|
Depreciation and
amortization
|
14,840
|
|
15,670
|
|
56,914
|
|
60,809
|
Equity in net loss
(income) of equity-method investees
|
264
|
|
(235)
|
|
655
|
|
(339)
|
Stock-based
compensation, net
|
4,001
|
|
3,122
|
|
9,503
|
|
13,380
|
Stock-based
compensation expense in connection with
Chief Executive Officer Succession Agreement
|
-
|
|
(2,203)
|
|
429
|
|
(2,203)
|
Goodwill
impairment
|
-
|
|
7,700
|
|
-
|
|
7,700
|
Long-lived asset and
intangibles impairment
|
10,010
|
|
5,743
|
|
33,719
|
|
14,033
|
Unrealized currency
(gains)/losses
|
(3,401)
|
|
3,143
|
|
(850)
|
|
(2,027)
|
EBITDA
|
$
25,919
|
|
$
45,817
|
|
$
80,698
|
|
$
197,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project Terra costs
and other
|
10,494
|
|
4,276
|
|
39,958
|
|
18,026
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
|
2,723
|
|
29,727
|
|
2,723
|
Proceeds from
insurance claims
|
(4,460)
|
|
-
|
|
(4,460)
|
|
-
|
Accounting review and
remediation costs, net of insurance proceeds
|
-
|
|
2,887
|
|
4,334
|
|
9,293
|
Warehouse/manufacturing facility start-up
costs
|
8,107
|
|
3,024
|
|
17,636
|
|
4,179
|
SKU
rationalization
|
10,346
|
|
-
|
|
12,381
|
|
4,913
|
Plant closure related
costs
|
3,954
|
|
1,567
|
|
7,457
|
|
5,513
|
Realized currency
loss on repayment of international loans
|
2,706
|
|
-
|
|
2,706
|
|
-
|
Litigation and
related expenses
|
455
|
|
780
|
|
1,517
|
|
1,015
|
Gain on sale of
business
|
(534)
|
|
-
|
|
(534)
|
|
-
|
Losses on terminated
chilled desserts contract
|
-
|
|
-
|
|
-
|
|
6,553
|
Co-packer
disruption
|
-
|
|
-
|
|
-
|
|
3,692
|
Regulated packaging
change
|
-
|
|
-
|
|
-
|
|
1,007
|
Toys "R" Us bad
debt
|
-
|
|
-
|
|
-
|
|
897
|
Recall and other
related costs
|
-
|
|
307
|
|
-
|
|
580
|
Machine break-down
costs
|
-
|
|
-
|
|
-
|
|
317
|
Adjusted
EBITDA
|
$
56,987
|
|
$
61,381
|
|
$
191,420
|
|
$
255,941
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(unaudited and
in thousands)
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2019
|
|
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
39,526
|
|
$
106,557
|
|
Accounts receivable,
net
|
236,945
|
|
252,708
|
|
Inventories
|
364,887
|
|
391,525
|
|
Prepaid expenses and
other current assets
|
60,429
|
|
59,946
|
|
Current assets of
discontinued operations
|
-
|
|
240,851
|
|
Total current
assets
|
701,787
|
|
1,051,587
|
Property, plant and
equipment, net
|
328,362
|
|
310,172
|
Goodwill
|
|
1,008,979
|
|
1,024,136
|
Trademarks and other
intangible assets, net
|
465,211
|
|
510,387
|
Investments and joint
ventures
|
18,890
|
|
20,725
|
Other
assets
|
59,391
|
|
29,667
|
|
Total
assets
|
$
2,582,620
|
|
$
2,946,674
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
238,298
|
|
$
229,993
|
|
Accrued expenses and
other current liabilities
|
118,940
|
|
116,001
|
|
Current portion of
long-term debt
|
25,919
|
|
26,605
|
|
Current liabilities
of discontinued operations
|
-
|
|
49,846
|
|
Total current
liabilities
|
383,157
|
|
422,445
|
Long-term debt, less
current portion
|
613,537
|
|
687,501
|
Deferred income
taxes
|
51,910
|
|
86,909
|
Other noncurrent
liabilities
|
14,697
|
|
12,770
|
Total
liabilities
|
1,063,301
|
|
1,209,625
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
1,088
|
|
1,084
|
|
Additional paid-in
capital
|
1,158,257
|
|
1,148,196
|
|
Retained
earnings
|
695,017
|
|
878,516
|
|
Accumulated other
comprehensive loss
|
(225,004)
|
|
(184,240)
|
|
|
|
1,629,358
|
|
1,843,556
|
|
Treasury
stock
|
(110,039)
|
|
(106,507)
|
|
Total stockholders'
equity
|
1,519,319
|
|
1,737,049
|
|
Total liabilities and
stockholders' equity
|
$
2,582,620
|
|
$
2,946,674
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Operations
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Twelve Months
Ended June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Net sales
|
$
557,682
|
|
$
619,598
|
|
$
2,302,468
|
|
$
2,457,769
|
Cost of
sales
|
451,605
|
|
494,501
|
|
1,857,255
|
|
1,942,321
|
Gross
profit
|
106,077
|
|
125,097
|
|
445,213
|
|
515,448
|
Selling, general and
administrative expenses
|
85,566
|
|
83,048
|
|
340,949
|
|
341,634
|
Amortization of
acquired intangibles
|
3,727
|
|
4,343
|
|
15,294
|
|
18,202
|
Project Terra costs
and other
|
10,494
|
|
4,276
|
|
40,107
|
|
18,026
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
|
520
|
|
30,156
|
|
520
|
Proceeds from
insurance claims
|
(4,460)
|
|
-
|
|
(4,460)
|
|
-
|
Accounting review and
remediation costs, net of insurance proceeds
|
-
|
|
2,887
|
|
4,334
|
|
9,293
|
Goodwill
impairment
|
-
|
|
7,700
|
|
-
|
|
7,700
|
Long-lived asset and
intangibles impairment
|
10,010
|
|
5,743
|
|
33,719
|
|
14,033
|
Operating income
(loss)
|
740
|
|
16,580
|
|
(14,886)
|
|
106,040
|
Interest and other
financing expense, net
|
10,166
|
|
7,382
|
|
36,078
|
|
26,925
|
Other
(income)/expense, net
|
(1,018)
|
|
3,360
|
|
1,023
|
|
(2,087)
|
(Loss) income from
continuing operations before income taxes
and equity in net loss (income) of equity-method
investees
|
(8,408)
|
|
5,838
|
|
(51,987)
|
|
81,202
|
(Benefit) provision
for income taxes
|
(1,018)
|
|
10,629
|
|
(2,697)
|
|
(887)
|
Equity in net loss
(income) of equity-method investees
|
264
|
|
(235)
|
|
655
|
|
(339)
|
Net
(loss) income from continuing operations
|
$
(7,654)
|
|
$
(4,556)
|
|
$
(49,945)
|
|
$
82,428
|
Net loss
from discontinued operations, net of tax
|
(5,897)
|
|
(65,385)
|
|
(133,369)
|
|
(72,734)
|
Net (loss)
income
|
$
(13,551)
|
|
$
(69,941)
|
|
$
(183,314)
|
|
$
9,694
|
|
|
|
|
|
|
|
|
Net (loss) income per
common share:
|
|
|
|
|
|
|
|
Basic net (loss)
income per common share from continuing operations
|
$
(0.07)
|
|
$
(0.04)
|
|
$
(0.48)
|
|
$
0.79
|
Basic net loss per
common share from discontinued operations
|
(0.06)
|
|
(0.63)
|
|
(1.28)
|
|
(0.70)
|
Basic
net (loss) income per common share
|
$
(0.13)
|
|
$
(0.67)
|
|
$
(1.76)
|
|
$
0.09
|
|
|
|
|
|
|
|
|
Diluted net (loss)
income per common share from continuing operations
|
$
(0.07)
|
|
$
(0.04)
|
|
$
(0.48)
|
|
$
0.79
|
Diluted net loss per
common share from discontinued operations
|
(0.06)
|
|
(0.63)
|
|
(1.28)
|
|
(0.70)
|
Diluted
net (loss) income per common share
|
$
(0.13)
|
|
$
(0.67)
|
|
$
(1.76)
|
|
$
0.09
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of net (loss) income per common share:
|
|
|
|
|
|
|
Basic
|
104,167
|
|
103,927
|
|
104,076
|
|
103,848
|
Diluted
|
104,167
|
|
103,927
|
|
104,076
|
|
104,477
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Cash Flows
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Twelve Months
Ended June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(13,551)
|
|
$
(69,941)
|
|
$
(183,314)
|
|
$
9,694
|
Net loss from
discontinued operations
|
(5,897)
|
|
(65,385)
|
|
(133,369)
|
|
(72,734)
|
Net (loss) income
from continuing operations
|
(7,654)
|
|
(4,556)
|
|
(49,945)
|
|
82,428
|
Adjustments to
reconcile net (loss) income from continuing operations to net
cash
provided by operating activities from continuing
operations:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
14,840
|
|
15,670
|
|
56,914
|
|
60,809
|
Deferred income
taxes
|
(1,137)
|
|
8,612
|
|
(25,790)
|
|
(21,503)
|
Equity in net loss
(income) of equity-method investees
|
264
|
|
(235)
|
|
655
|
|
(339)
|
Stock-based
compensation, net
|
4,001
|
|
919
|
|
9,932
|
|
11,177
|
Impairment
charges
|
10,010
|
|
13,443
|
|
33,719
|
|
21,733
|
Other non-cash items,
net
|
(2,478)
|
|
1,284
|
|
1,225
|
|
(741)
|
Increase (decrease)
in cash attributable to changes in operating assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
30,018
|
|
(843)
|
|
21,194
|
|
(24,841)
|
Inventories
|
27,824
|
|
(1,681)
|
|
20,648
|
|
(45,036)
|
Other current
assets
|
(6,073)
|
|
(1,116)
|
|
(5,758)
|
|
(9,269)
|
Other assets and
liabilities
|
(1,551)
|
|
(7,763)
|
|
3,697
|
|
(2,396)
|
Accounts payable and
accrued expenses
|
(30,588)
|
|
30,204
|
|
(16,972)
|
|
49,286
|
Net cash provided by
operating activities - continuing operations
|
37,476
|
|
53,938
|
|
49,519
|
|
121,308
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(21,236)
|
|
(22,523)
|
|
(77,128)
|
|
(70,891)
|
Acquisitions of
businesses, net of cash acquired
|
-
|
|
696
|
|
-
|
|
(12,368)
|
Proceeds from sale of
assets and other
|
3,282
|
|
614
|
|
7,145
|
|
738
|
Net cash used in
investing activities - continuing operations
|
(17,954)
|
|
(21,213)
|
|
(69,983)
|
|
(82,521)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Borrowings under bank
revolving credit facility
|
45,000
|
|
20,000
|
|
285,000
|
|
65,000
|
Repayments under bank
revolving credit facility
|
(82,000)
|
|
(45,035)
|
|
(268,791)
|
|
(400,220)
|
Borrowings under term
loan
|
-
|
|
-
|
|
-
|
|
299,245
|
Repayments under term
loan
|
(78,750)
|
|
(3,750)
|
|
(90,000)
|
|
(3,750)
|
Proceeds from
(funding of) discontinued operations entities
|
73,480
|
|
(4,401)
|
|
36,029
|
|
(21,568)
|
Borrowings
(repayments) of other debt, net
|
1,599
|
|
(4,107)
|
|
(3,171)
|
|
(996)
|
Shares withheld for
payment of employee payroll taxes
|
(461)
|
|
(340)
|
|
(3,532)
|
|
(7,193)
|
Net cash used in
financing activities - continuing operations
|
(41,132)
|
|
(37,633)
|
|
(44,465)
|
|
(69,482)
|
Effect of exchange
rate changes on cash
|
(878)
|
|
(5,687)
|
|
(2,102)
|
|
197
|
CASH FLOWS FROM
DISCONTINUED OPERATIONS
|
|
|
|
|
|
|
|
Cash used in
operating activities
|
(911)
|
|
(2,303)
|
|
(8,250)
|
|
(14,086)
|
Cash provided by
(used in) investing activities
|
70,683
|
|
(2,221)
|
|
37,941
|
|
(10,752)
|
Cash (used in)
provided by financing activities
|
(73,450)
|
|
4,350
|
|
(36,151)
|
|
21,361
|
Net cash flows used
in discontinued operations
|
(3,678)
|
|
(174)
|
|
(6,460)
|
|
(3,477)
|
Net decrease in cash
and cash equivalents
|
(26,166)
|
|
(10,769)
|
|
(73,491)
|
|
(33,975)
|
Cash and cash
equivalents at beginning of period
|
65,692
|
|
123,786
|
|
113,017
|
|
146,992
|
Cash and cash
equivalents at end of period
|
$
39,526
|
|
$
113,017
|
|
$
39,526
|
|
$
113,017
|
Less: cash and cash
equivalents of discontinued operations
|
-
|
|
(6,460)
|
|
-
|
|
(6,460)
|
Cash and cash
equivalents of continuing operations at end of period
|
$
39,526
|
|
$
106,557
|
|
$
39,526
|
|
$
106,557
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
2019
GAAP
|
Adjustments
|
2019
Adjusted
|
|
2018
GAAP
|
Adjustments
|
2018
Adjusted
|
|
|
|
|
|
|
|
|
Net sales
|
$
557,682
|
-
|
$
557,682
|
|
$
619,598
|
-
|
$
619,598
|
Cost of
sales
|
451,605
|
(22,314)
|
429,291
|
|
494,501
|
(5,346)
|
489,155
|
Gross
profit
|
106,077
|
22,314
|
128,391
|
|
125,097
|
5,346
|
130,443
|
Operating expenses
(a)
|
99,303
|
(11,459)
|
87,844
|
|
93,134
|
(7,172)
|
85,962
|
Project Terra costs
and other
|
10,494
|
(10,494)
|
-
|
|
4,276
|
(4,276)
|
-
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
-
|
-
|
|
520
|
(520)
|
-
|
Proceeds from
insurance claims
|
(4,460)
|
4,460
|
-
|
|
-
|
-
|
-
|
Accounting review and
remediation costs, net of insurance proceeds
|
-
|
-
|
-
|
|
2,887
|
(2,887)
|
-
|
Goodwill
impairment
|
-
|
-
|
-
|
|
7,700
|
(7,700)
|
-
|
Operating
income
|
740
|
39,807
|
40,547
|
|
16,580
|
27,901
|
44,481
|
Interest and other
expense (income), net (b)
|
9,147
|
882
|
10,029
|
|
10,742
|
(3,143)
|
7,599
|
(Benefit) provision
for income taxes
|
(1,018)
|
8,912
|
7,894
|
|
10,629
|
(1,255)
|
9,374
|
Net
(loss) income from continuing operations
|
(7,654)
|
30,013
|
22,359
|
|
(4,556)
|
32,299
|
27,743
|
Net
(loss) income from discontinued operations, net of tax
|
(5,897)
|
5,897
|
-
|
|
(65,385)
|
65,385
|
-
|
Net (loss)
income
|
(13,551)
|
35,910
|
22,359
|
|
(69,941)
|
97,684
|
27,743
|
|
|
|
|
|
|
|
|
Diluted net (loss)
income per common share from continuing operations
|
(0.07)
|
0.29
|
0.21
|
|
(0.04)
|
0.31
|
0.27
|
Diluted net (loss)
income per common share from discontinued operations
|
(0.06)
|
0.06
|
-
|
|
(0.63)
|
0.63
|
-
|
Diluted
net (loss) income per common share
|
(0.13)
|
0.34
|
0.21
|
|
(0.67)
|
0.94
|
0.27
|
|
|
|
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30, 2019
|
|
|
|
Three Months
Ended
June 30, 2018
|
|
Warehouse/manufacturing facility start-up
costs
|
|
$
8,107
|
|
|
|
$
3,024
|
|
Plant closure related
costs
|
|
3,861
|
|
|
|
2,015
|
|
SKU
rationalization
|
|
10,346
|
|
|
|
-
|
|
Recall and other
related costs
|
|
-
|
|
|
|
307
|
|
Cost of
sales
|
|
22,314
|
|
|
|
5,346
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
22,314
|
|
|
|
5,346
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation acceleration
|
|
875
|
|
|
|
-
|
|
Intangibles
impairment
|
|
-
|
|
|
|
5,632
|
|
Long-lived asset
impairment charge associated with plant closure
|
|
10,010
|
|
|
|
111
|
|
Litigation and
related expenses
|
|
455
|
|
|
|
780
|
|
Plant closure related
costs
|
|
119
|
|
|
|
-
|
|
Accelerated
Depreciation on software disposal
|
|
-
|
|
|
|
461
|
|
Warehouse/manufacturing facility start-up
costs
|
|
-
|
|
|
|
188
|
|
Operating expenses
(a)
|
|
11,459
|
|
|
|
7,172
|
|
|
|
|
|
|
|
|
|
Project Terra costs
and other
|
|
10,494
|
|
|
|
4,276
|
|
Project Terra costs
and other
|
|
10,494
|
|
|
|
4,276
|
|
|
|
|
|
|
|
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
-
|
|
|
|
520
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
-
|
|
|
|
520
|
|
|
|
|
|
|
|
|
|
Proceeds from
insurance claims
|
|
(4,460)
|
|
|
|
-
|
|
Proceeds from
insurance claims
|
|
(4,460)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
-
|
|
|
|
2,887
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
-
|
|
|
|
2,887
|
|
|
|
|
|
|
|
|
|
Goodwill
impairment
|
|
-
|
|
|
|
7,700
|
|
Goodwill
impairment
|
|
-
|
|
|
|
7,700
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
39,807
|
|
|
|
27,901
|
|
|
|
|
|
|
|
|
|
Unrealized currency
gains
|
|
(3,401)
|
|
|
|
3,143
|
|
Realized currency
loss on repayment of international loans
|
|
2,706
|
|
|
|
-
|
|
Gain on sale of
business
|
|
(534)
|
|
|
|
-
|
|
Deferred financing
cost write-off
|
|
347
|
|
|
|
-
|
|
Interest and other
expense (income), net (b)
|
|
(882)
|
|
|
|
3,143
|
|
|
|
|
|
|
|
|
|
Income tax related
adjustments
|
|
(8,912)
|
|
|
|
1,255
|
|
(Benefit) provision
for income taxes
|
|
(8,912)
|
|
|
|
1,255
|
|
|
|
|
|
|
|
|
|
Net
(loss) income from continuing operations
|
|
$
30,013
|
|
|
|
$
32,299
|
|
|
|
|
|
|
|
|
|
(a)Operating expenses include amortization
of acquired intangibles, selling, general, and administrative
expenses and long-lived asset and intangibles
impairment.
|
|
|
(b)Interest and other expense (income),
net includes interest and other financing expenses, net and other
expense (income), net.
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended June 30,
|
|
2019
GAAP
|
Adjustments
|
2019
Adjusted
|
|
2018
GAAP
|
Adjustments
|
2018
Adjusted
|
|
|
|
|
|
|
|
|
Net sales
|
$
2,302,468
|
-
|
$
2,302,468
|
|
$
2,457,769
|
-
|
$
2,457,769
|
Cost of
sales
|
1,857,255
|
(37,623)
|
1,819,632
|
|
1,942,321
|
(27,200)
|
1,915,121
|
Gross
profit
|
445,213
|
37,623
|
482,836
|
|
515,448
|
27,200
|
542,648
|
Operating expenses
(a)
|
389,962
|
(37,316)
|
352,646
|
|
373,869
|
(17,294)
|
356,575
|
Project Terra costs
and other
|
40,107
|
(40,107)
|
-
|
|
18,026
|
(18,026)
|
-
|
Chief Executive
Officer Succession Plan expense, net
|
30,156
|
(30,156)
|
-
|
|
520
|
(520)
|
-
|
Proceeds from
insurance claims
|
(4,460)
|
4,460
|
-
|
|
-
|
-
|
-
|
Accounting review and
remediation costs, net of insurance proceeds
|
4,334
|
(4,334)
|
-
|
|
9,293
|
(9,293)
|
-
|
Goodwill
impairment
|
-
|
-
|
-
|
|
7,700
|
(7,700)
|
-
|
Operating (loss)
income
|
(14,886)
|
145,076
|
130,190
|
|
106,040
|
80,033
|
186,073
|
Interest and other
expense (income), net (b)
|
37,100
|
(1,669)
|
35,431
|
|
24,838
|
2,027
|
26,865
|
(Benefit)
provision for income taxes
|
(2,697)
|
28,116
|
25,419
|
|
(887)
|
39,133
|
38,246
|
Net
(loss) income from continuing operations
|
(49,945)
|
118,628
|
68,683
|
|
82,428
|
38,873
|
121,301
|
Net
(loss) income from discontinued operations, net of tax
|
(133,369)
|
133,369
|
-
|
|
(72,734)
|
72,734
|
-
|
Net (loss)
income
|
(183,314)
|
251,997
|
68,683
|
|
9,694
|
111,607
|
121,301
|
|
|
|
|
|
|
|
|
Diluted net (loss)
income per common share from continuing operations
|
(0.48)
|
1.14
|
0.66
|
|
0.79
|
0.37
|
1.16
|
Diluted net (loss)
income per common share from discontinued operations
|
(1.28)
|
1.28
|
-
|
|
(0.70)
|
0.70
|
-
|
Diluted
net (loss) income per common share
|
(1.76)
|
2.42
|
0.66
|
|
0.09
|
1.07
|
1.16
|
|
|
|
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
June 30, 2019
|
|
|
|
Twelve Months
Ended
June 30, 2018
|
|
Warehouse/manufacturing facility start-up
costs
|
|
$
17,636
|
|
|
|
$
4,179
|
|
Plant closure related
costs
|
|
7,606
|
|
|
|
5,958
|
|
SKU
rationalization
|
|
12,381
|
|
|
|
4,913
|
|
Recall and other
related costs
|
|
-
|
|
|
|
580
|
|
Machine break-down
costs
|
|
-
|
|
|
|
317
|
|
Losses on terminated
chilled desserts contract
|
|
-
|
|
|
|
6,553
|
|
Co-packer
disruption
|
|
-
|
|
|
|
3,692
|
|
Regulated packaging
change
|
|
-
|
|
|
|
1,007
|
|
Cost of
sales
|
|
37,623
|
|
|
|
27,200
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
37,623
|
|
|
|
27,200
|
|
|
|
|
|
|
|
|
|
Intangibles
impairment
|
|
17,900
|
|
|
|
5,632
|
|
Long-lived asset
impairment charge associated with plant closure
|
|
15,819
|
|
|
|
8,401
|
|
Litigation and
related expenses
|
|
1,517
|
|
|
|
1,015
|
|
Stock-based
compensation acceleration
|
|
1,458
|
|
|
|
700
|
|
Plant closure related
costs
|
|
622
|
|
|
|
-
|
|
Toys "R" Us bad
debt
|
|
-
|
|
|
|
897
|
|
Accelerated
Depreciation on software disposal
|
|
-
|
|
|
|
461
|
|
Warehouse/manufacturing facility start-up
costs
|
|
-
|
|
|
|
188
|
|
Operating expenses
(a)
|
|
37,316
|
|
|
|
17,294
|
|
|
|
|
|
|
|
|
|
Project Terra costs
and other
|
|
40,107
|
|
|
|
18,026
|
|
Project Terra costs
and other
|
|
40,107
|
|
|
|
18,026
|
|
|
|
|
|
|
|
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
30,156
|
|
|
|
520
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
30,156
|
|
|
|
520
|
|
|
|
|
|
|
|
|
|
Proceeds from
insurance claims
|
|
(4,460)
|
|
|
|
-
|
|
Proceeds from
insurance claims
|
|
(4,460)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
4,334
|
|
|
|
9,293
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
4,334
|
|
|
|
9,293
|
|
|
|
|
|
|
|
|
|
Goodwill
impairment
|
|
-
|
|
|
|
7,700
|
|
Goodwill
impairment
|
|
-
|
|
|
|
7,700
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
145,076
|
|
|
|
80,033
|
|
|
|
|
|
|
|
|
|
Unrealized currency
gains
|
|
(850)
|
|
|
|
(2,027)
|
|
Realized currency
loss on repayment of international loans
|
|
2,706
|
|
|
|
-
|
|
Gain on sale of
business
|
|
(534)
|
|
|
|
-
|
|
Deferred financing
cost write-off
|
|
347
|
|
|
|
-
|
|
Interest and other
expense (income), net (b)
|
|
1,669
|
|
|
|
(2,027)
|
|
|
|
|
|
|
|
|
|
Income tax related
adjustments
|
|
(28,116)
|
|
|
|
(39,133)
|
|
(Benefit) provision
for income taxes
|
|
(28,116)
|
|
|
|
(39,133)
|
|
|
|
|
|
|
|
|
|
Net
(loss) income from continuing operations
|
|
$
118,628
|
|
|
|
$
38,873
|
|
|
|
|
|
|
|
|
|
(a)Operating expenses include amortization
of acquired intangibles, selling, general, and administrative
expenses and long-lived asset and intangibles
impairment.
|
|
|
(b)Interest and other expense (income),
net includes interest and other financing expenses, net and other
expense (income), net.
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
|
|
|
|
Net Sales Growth
at Constant Currency
|
|
|
|
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
Kingdom
|
|
Rest of
World
|
|
|
|
|
|
|
Net sales -
Three months ended 6/30/19
|
$
557,682
|
|
$
214,367
|
|
$
103,494
|
|
|
|
|
|
|
Impact of
foreign currency exchange
|
17,036
|
|
12,225
|
|
4,811
|
|
|
|
|
|
|
Net sales on a
constant currency basis -
Three months ended 6/30/19
|
$
574,718
|
|
$
226,592
|
|
$
108,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - Three
months ended 6/30/18
|
$
619,598
|
|
$
239,061
|
|
$
110,680
|
|
|
|
|
|
|
Net sales growth on a
constant currency basis
|
(7.2)%
|
|
(5.2)%
|
|
(2.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
Kingdom
|
|
Rest of
World
|
|
|
|
|
|
|
Net sales -
Twelve months ended 6/30/19
|
$
2,302,468
|
|
$
885,488
|
|
$
407,574
|
|
|
|
|
|
|
Impact of
foreign currency exchange
|
52,622
|
|
36,122
|
|
16,500
|
|
|
|
|
|
|
Net sales on a
constant currency basis -
Twelve months ended 6/30/19
|
$
2,355,090
|
|
$
921,610
|
|
$
424,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - Twelve
months ended 6/30/18
|
$
2,457,769
|
|
$
938,029
|
|
$
434,869
|
|
|
|
|
|
|
Net sales growth on a
constant currency basis
|
(4.2)%
|
|
(1.8)%
|
|
(2.5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Growth
at Constant Currency and Adjusted for Acquisitions, Divestitures
and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
States
|
|
United
Kingdom
|
|
Rest of
World
|
|
|
|
|
Net sales on a
constant currency basis -
Three months ended 6/30/19
|
$
574,718
|
|
$
239,821
|
|
$
226,592
|
|
$
108,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - Three
months ended 6/30/18
|
$
619,598
|
|
$
269,857
|
|
$
239,061
|
|
$
110,680
|
|
|
|
|
Project Terra SKU
rationalization
|
(10,445)
|
|
(9,335)
|
|
-
|
|
(1,110)
|
|
|
|
|
Net sales on a
constant currency basis adjusted for
acquisitions, divestitures and other - Three months
ended 6/30/18
|
$
609,153
|
|
$
260,522
|
|
$
239,061
|
|
$
109,570
|
|
|
|
|
Net sales
growth on a constant currency
basis adjusted for acquisitions, divestitures and
other
|
(5.7)%
|
|
(7.9)%
|
|
(5.2)%
|
|
(1.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tilda
|
|
Hain
Daniels
|
|
Ella's
Kitchen
|
|
Hain Celestial
Europe
|
|
Hain Celestial
Canada
|
|
Hain
Ventures
|
Net sales growth -
Three months ended 6/30/19
|
2.6%
|
|
(14.3)%
|
|
(7.3)%
|
|
0.6%
|
|
(7.8)%
|
|
(29.2)%
|
Impact of foreign
currency exchange
|
5.3%
|
|
5.0%
|
|
5.4%
|
|
6.3%
|
|
3.4%
|
|
– %
|
Impact of Project
Terra SKU rationalization
|
– %
|
|
– %
|
|
– %
|
|
– %
|
|
2.3%
|
|
0.5%
|
Net sales
growth on a constant currency basis adjusted for
acquisitions, divestitures and other - Three months
ended 6/30/19
|
7.9%
|
|
(9.3)%
|
|
(1.9)%
|
|
6.9%
|
|
(2.1)%
|
|
(28.7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
States
|
|
United
Kingdom
|
|
Rest of
World
|
|
|
|
|
Net sales on a
constant currency basis -
Twelve months ended 6/30/19
|
$
2,355,090
|
|
$
1,009,406
|
|
$
921,610
|
|
$
424,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - Twelve
months ended 6/30/18
|
$
2,457,769
|
|
$
1,084,871
|
|
$
938,029
|
|
$
434,869
|
|
|
|
|
Acquisitions
|
4,335
|
|
-
|
|
4,335
|
|
-
|
|
|
|
|
Castle contract
termination
|
(12,359)
|
|
-
|
|
(12,359)
|
|
-
|
|
|
|
|
Project Terra SKU
rationalization
|
(43,310)
|
|
(38,226)
|
|
-
|
|
(5,084)
|
|
|
|
|
Net sales on a
constant currency basis adjusted for
acquisitions, divestitures and other - Twelve months
ended 6/30/18
|
$
2,406,435
|
|
$
1,046,645
|
|
$
930,005
|
|
$
429,785
|
|
|
|
|
Net sales
growth on a constant currency
basis adjusted for acquisitions, divestitures and
other
|
(2.1)%
|
|
(3.6)%
|
|
(0.9)%
|
|
(1.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tilda
|
|
Hain
Daniels
|
|
Ella's
Kitchen
|
|
Hain Celestial
Europe
|
|
Hain Celestial
Canada
|
|
Hain
Ventures
|
Net sales growth -
Twelve months ended 6/30/19
|
3.2%
|
|
(8.8)%
|
|
0.5%
|
|
(1.1)%
|
|
(7.9)%
|
|
(19.6)%
|
Impact of foreign
currency exchange
|
4.3%
|
|
3.7%
|
|
4.1%
|
|
4.8%
|
|
3.9%
|
|
– %
|
Impact of
acquisitions
|
– %
|
|
(0.6)%
|
|
– %
|
|
– %
|
|
– %
|
|
– %
|
Impact of castle
contract termination
|
– %
|
|
1.8%
|
|
– %
|
|
– %
|
|
– %
|
|
– %
|
Impact of Project
Terra SKU rationalization
|
– %
|
|
– %
|
|
– %
|
|
– %
|
|
2.1%
|
|
2.0%
|
Net sales
growth on a constant currency basis adjusted for
acquisitions, divestitures and other - Twelve months
ended 6/30/19
|
7.5%
|
|
(3.9)%
|
|
4.6%
|
|
3.7%
|
|
(1.9)%
|
|
(17.6)%
|
THE HAIN CELESTIAL
GROUP, INC.
|
Segment EBITDA and
Adjusted EBITDA
|
Three Months
Ended
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
|
United
States
|
|
|
|
|
|
|
|
June 30,
2019
|
|
March 31,
2019
|
|
June 30,
2018
|
|
|
|
|
|
|
Operating (Loss)
Income
|
$
(2,585)
|
|
$
17,099
|
|
$
18,623
|
Depreciation and
amortization
|
3,235
|
|
3,274
|
|
3,670
|
Long-lived asset
impairment
|
5,179
|
|
-
|
|
(286)
|
Other
|
172
|
|
499
|
|
71
|
EBITDA
|
$
6,001
|
|
$
20,872
|
|
$
22,078
|
Project Terra costs
and other
|
3,085
|
|
1,246
|
|
894
|
Warehouse/manufacturing facility start-up
costs
|
7,974
|
|
3,101
|
|
2,943
|
Plant closure related
costs
|
31
|
|
26
|
|
711
|
SKU
rationalization
|
6,665
|
|
303
|
|
-
|
Realized currency
loss on repayment of international loans
|
465
|
|
-
|
|
-
|
Recall and other
related costs
|
-
|
|
-
|
|
307
|
Adjusted
EBITDA
|
$
24,221
|
|
$
25,548
|
|
$
26,933
|
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
|
|
|
|
|
|
June 30,
2019
|
|
March 31,
2019
|
|
June 30,
2018
|
|
|
|
|
|
|
Operating
Income
|
$
15,591
|
|
$
18,147
|
|
$
18,984
|
Depreciation and
amortization
|
7,523
|
|
7,258
|
|
8,057
|
Long-lived asset
impairment
|
4,393
|
|
-
|
|
-
|
Other
|
(445)
|
|
371
|
|
(190)
|
EBITDA
|
$
27,062
|
|
$
25,776
|
|
$
26,851
|
Project Terra costs
and other
|
(1,453)
|
|
896
|
|
272
|
Plant closure related
costs
|
3,781
|
|
77
|
|
352
|
Adjusted
EBITDA
|
$
29,390
|
|
$
26,749
|
|
$
27,475
|
|
|
|
|
|
|
|
|
|
|
|
|
Rest of
World
|
|
|
|
|
|
|
|
June 30,
2019
|
|
March 31,
2019
|
|
June 30,
2018
|
|
|
|
|
|
|
Operating
Income
|
$
5,742
|
|
$
10,868
|
|
$
8,069
|
Depreciation and
amortization
|
3,115
|
|
2,953
|
|
3,437
|
Long-lived asset
impairment
|
438
|
|
-
|
|
397
|
Other
|
(1,344)
|
|
166
|
|
(4)
|
EBITDA
|
$
7,951
|
|
$
13,987
|
|
$
11,899
|
Project Terra costs
and other
|
1,074
|
|
17
|
|
419
|
Warehouse/manufacturing facility start-up
costs
|
133
|
|
121
|
|
81
|
Plant closure related
costs
|
84
|
|
93
|
|
504
|
SKU
rationalization
|
3,681
|
|
202
|
|
-
|
Realized currency
loss on repayment of international loans
|
2,241
|
|
-
|
|
-
|
Gain on sale of
business
|
(534)
|
|
-
|
|
-
|
Adjusted
EBITDA
|
$
14,630
|
|
$
14,420
|
|
$
12,903
|
THE HAIN CELESTIAL
GROUP, INC.
|
|
Segment EBITDA and
Adjusted EBITDA
|
|
Twelve Months
Ended
|
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
|
|
United
States
|
|
|
|
|
|
|
|
June 30,
2019
|
|
|
June 30,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
$
23,864
|
|
|
$
86,319
|
|
Depreciation and
amortization
|
13,103
|
|
|
15,843
|
|
Long-lived asset
impairment
|
6,510
|
|
|
5,446
|
|
Other
|
1,083
|
|
|
375
|
|
EBITDA
|
$
44,561
|
|
|
$
107,983
|
|
Project Terra costs
and other
|
7,288
|
|
|
5,810
|
|
Warehouse/manufacturing facility start-up
costs
|
16,843
|
|
|
2,943
|
|
Plant closure related
costs
|
410
|
|
|
3,349
|
|
SKU
rationalization
|
8,296
|
|
|
3,712
|
|
Realized currency
loss on repayment of international loans
|
465
|
|
|
-
|
|
Co-packer
disruption
|
-
|
|
|
3,372
|
|
Regulated packaging
change
|
-
|
|
|
1,007
|
|
Toys "R" Us bad
debt
|
-
|
|
|
897
|
|
Recall and other
related costs
|
-
|
|
|
307
|
|
Adjusted
EBITDA
|
$
77,863
|
|
|
$
129,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
|
|
|
|
|
|
June 30,
2019
|
|
|
June 30,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
$
52,413
|
|
|
$
56,046
|
|
Depreciation and
amortization
|
29,711
|
|
|
31,095
|
|
Long-lived asset
impairment
|
8,699
|
|
|
2,560
|
|
Other
|
78
|
|
|
(437)
|
|
EBITDA
|
$
90,901
|
|
|
$
89,264
|
|
Project Terra costs
and other
|
2,431
|
|
|
1,090
|
|
Warehouse/manufacturing facility start-up
costs
|
-
|
|
|
1,155
|
|
Plant closure related
costs
|
6,187
|
|
|
1,514
|
|
Litigation and
related expenses
|
29
|
|
|
-
|
|
Losses on terminated
chilled desserts contract
|
-
|
|
|
6,553
|
|
Co-packer
disruption
|
-
|
|
|
126
|
|
Machine break-down
costs
|
-
|
|
|
317
|
|
Recall and other
related costs
|
-
|
|
|
273
|
|
Adjusted
EBITDA
|
$
99,548
|
|
|
$
100,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rest of
World
|
|
|
|
|
|
|
|
June 30,
2019
|
|
|
June 30,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
$
32,819
|
|
|
$
38,660
|
|
Depreciation and
amortization
|
11,803
|
|
|
11,643
|
|
Long-lived asset
impairment
|
610
|
|
|
397
|
|
Other
|
(1,202)
|
|
|
(332)
|
|
EBITDA
|
$
44,031
|
|
|
$
50,368
|
|
Project Terra costs
and other
|
1,868
|
|
|
1,002
|
|
Warehouse/manufacturing facility start-up
costs
|
793
|
|
|
81
|
|
Plant closure related
costs
|
784
|
|
|
650
|
|
SKU
rationalization
|
4,085
|
|
|
1,201
|
|
Realized currency
loss on repayment of international loans
|
2,241
|
|
|
-
|
|
Gain on sale of
business
|
(534)
|
|
|
-
|
|
Co-packer
disruption
|
-
|
|
|
194
|
|
Adjusted
EBITDA
|
$
53,268
|
|
|
$
53,496
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Segment
Information
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
|
|
United
States
|
United
Kingdom
|
Rest of
World
|
Corporate/
Other
|
Total
|
Net
Sales
|
|
|
|
|
|
Net sales - Three
months ended 3/31/19
|
$
266,445
|
$
227,206
|
$
106,146
|
$
-
|
$
599,797
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
Three months ended
3/31/19
|
|
|
|
|
|
Operating income
(loss)
|
$
17,099
|
$
18,147
|
$
10,868
|
$
(22,249)
|
$
23,865
|
Non-GAAP adjustments
(1)
|
4,676
|
976
|
432
|
8,955
|
15,039
|
Adjusted operating
income (loss)
|
$
21,775
|
$
19,123
|
$
11,300
|
$
(13,294)
|
$
38,904
|
Operating income
margin
|
6.4%
|
8.0%
|
10.2%
|
|
4.0%
|
Adjusted operating
income margin
|
8.2%
|
8.4%
|
10.6%
|
|
6.5%
|
|
|
|
|
|
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
EBITDA and Adjusted EBITDA
|
Three Months
Ended March 31, 2019
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
|
Net loss
|
$
(65,837)
|
|
|
|
|
Net loss from
discontinued operations
|
(75,925)
|
|
|
|
|
Net income from
continuing operations
|
$
10,088
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
3,114
|
|
|
|
|
Interest expense,
net
|
8,677
|
|
|
|
|
Depreciation and
amortization
|
13,968
|
|
|
|
|
Equity in net loss of
equity-method investees
|
205
|
|
|
|
|
Stock-based
compensation, net
|
3,937
|
|
|
|
|
Unrealized currency
losses
|
1,522
|
|
|
|
|
EBITDA
|
$
41,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project Terra costs
and other
|
9,259
|
|
|
|
|
Chief Executive
Officer Succession Plan expense, net
|
455
|
|
|
|
|
Warehouse/manufacturing facility start-up
costs
|
3,222
|
|
|
|
|
Plant closure related
costs
|
184
|
|
|
|
|
SKU
rationalization
|
505
|
|
|
|
|
Litigation and
related expenses
|
371
|
|
|
|
|
Adjusted
EBITDA
|
$
55,507
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2019
GAAP
|
Adjustments
|
2019
Adjusted
|
|
|
|
|
Net sales
|
$
599,797
|
-
|
$
599,797
|
Cost of
sales
|
474,528
|
(4,153)
|
470,375
|
Gross
profit
|
125,269
|
4,153
|
129,422
|
Operating expenses
(a)
|
91,541
|
(1,023)
|
90,518
|
Project Terra costs
and other
|
9,408
|
(9,408)
|
-
|
Chief Executive
Officer Succession Plan expense, net
|
455
|
(455)
|
-
|
Operating
income
|
23,865
|
15,039
|
38,904
|
Interest and other
expense (income), net (b)
|
10,458
|
(1,522)
|
8,936
|
Provision for income
taxes
|
3,114
|
4,963
|
8,077
|
Net
income from continuing operations
|
10,088
|
11,598
|
21,686
|
Net
(loss) income from discontinued operations, net of tax
|
(75,925)
|
75,925
|
-
|
Net (loss)
income
|
(65,837)
|
87,523
|
21,686
|
|
|
|
|
Diluted net income
per common share from continuing operations
|
0.10
|
0.11
|
0.21
|
Diluted net (loss)
income per common share from discontinued operations
|
(0.73)
|
0.73
|
-
|
Diluted
net (loss) income per common share
|
(0.63)
|
0.84
|
0.21
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
Three Months
Ended
March 31, 2019
|
|
Warehouse/manufacturing facility start-up
costs
|
|
$
3,222
|
|
Plant closure related
costs
|
|
426
|
|
SKU
rationalization
|
|
505
|
|
Cost of
sales
|
|
4,153
|
|
|
|
|
|
Gross
profit
|
|
4,153
|
|
|
|
|
|
Stock-based
compensation acceleration
|
|
583
|
|
Litigation and
related expenses
|
|
371
|
|
Plant closure related
costs
|
|
69
|
|
Operating expenses
(a)
|
|
1,023
|
|
|
|
|
|
Project Terra costs
and other
|
|
9,408
|
|
Project Terra costs
and other
|
|
9,408
|
|
|
|
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
455
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
455
|
|
|
|
|
|
Operating
income
|
|
15,039
|
|
|
|
|
|
Unrealized currency
losses
|
|
1,522
|
|
Interest and other
expense (income), net (b)
|
|
1,522
|
|
|
|
|
|
Income tax related
adjustments
|
|
(4,963)
|
|
Provision for income
taxes
|
|
(4,963)
|
|
|
|
|
|
Net
income from continuing operations
|
|
$
11,598
|
|
|
|
|
|
(a)Operating expenses include amortization
of acquired intangibles, selling, general, and administrative
expenses and long-lived asset and intangibles
impairment.
|
(b)Interest and other expenses, net
includes interest and other financing expenses, net and other
expense (income), net.
|
View original
content:http://www.prnewswire.com/news-releases/hain-celestial-reports-fourth-quarter-and-fiscal-year-2019-financial-results-300908828.html
SOURCE The Hain Celestial Group, Inc.